Kingstone Companies Inc (KINS) 2026 Q1 法說會逐字稿

Greetings, and welcome to the Kingstone Companies' first quarter 2026 earnings conference call. As a reminder, this conference is being recorded.

各位好，歡迎參加 Kingstone Companies 2026 年第一季財報電話會議。提醒各位，本次會議將被錄音。

I would now like to turn the call over to your host, Stefan Norbom, Kingstone's Investor Relations representative. You may begin.

現在我想把電話會議交給主持人 Stefan Norbom，Kingstone 的投資人關係代表。您可以開始了。

Thank you, and good morning, everyone. Joining us today on the call will be President and Chief Executive Officer, Meryl Golden; and Vice President and Chief Financial Officer, Randy Patten. On behalf of the company, I would like to note that this conference call may contain forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from projected results. Forward-looking statements speak only as of the date on which they are made, and Kingstone undertakes no obligation to update the information discussed. For more information, please refer to the section entitled Risk Factors in Part 1, Item 1A of the company's latest Form 10-K.

謝謝，各位早安。今天與會的有總裁兼執行長 Meryl Golden，以及副總裁兼財務長 Randy Patten。我謹代表公司提醒，本次電話會議可能包含前瞻性陳述，涉及已知與未知的風險、不確定性及其他因素，可能導致實際結果與預期結果存在重大差異。前瞻性陳述僅反映其作成當日之情況，Kingstone 不承擔更新所討論資訊之義務。更多資訊請參閱公司最新 Form 10-K 第一部分第 1A 項「風險因素」章節。

Additionally, today's remarks may include references to non-GAAP measures. For a reconciliation of these non-GAAP measures to GAAP figures, please see the tables in the latest earnings release available on the company's website at www.kingstonecompanies.com.

此外，今天的發言可能會提及非 GAAP 指標。關於這些非 GAAP 指標與 GAAP 數字之間的調節，請參閱公司網站 www.kingstonecompanies.com 上最新財報新聞稿中的表格。

With that, it's my pleasure to turn the call over to Meryl Golden. Meryl?

接下來，我很高興把電話會議交給 Meryl Golden。Meryl？

Thanks, Stefan. Good morning, everyone, and thanks for joining our call. Let me start with the headlines. Our GAAP net combined ratio for the first quarter was a 112%, and we had a net loss of $5.8 million or $0.40 per diluted share. The quarter's results were driven by 11 winter catastrophe events across the Northeast, contributing 26 points to the loss ratio.

謝謝你，Stefan。各位早安，感謝參加我們的電話會議。我先從重點摘要開始。第一季我們的 GAAP 淨綜合比率為 112%，淨損為 580 萬美元，或稀釋後每股虧損 0.40 美元。本季結果主要受東北地區 11 起冬季巨災事件影響，使損失率增加 26 個點。

The winter storm season in the first quarter was exceptionally severe for downstate New York and ranked as the coldest and snowiest in 11 years. I'm extremely proud of the way our claims organization handled these catastrophe events with many staff members working nights and weekends for months to be accessible and help our policyholders return to their pre-loss condition. This level of catastrophe activity was contemplated in our full year guidance.

第一季的冬季風暴季對紐約州下州地區而言格外嚴峻，為 11 年來最寒冷、降雪最多的一季。我對我們理賠團隊處理這些巨災事件的表現感到非常自豪，許多同仁連續數月在夜間與週末加班，以便隨時提供協助，幫助保戶恢復至損失發生前的狀態。這樣的巨災活動水準已納入我們全年指引的考量。

Now let me turn to what I believe is the more important story this quarter, the health of our underlying business. Last quarter, we introduced the underlying combined ratio as our primary operating metric specifically to give investors a clearer view of the business we control, separated from the inherent volatility of catastrophe events.

接下來談談我認為本季更重要的主題：我們核心業務的健康狀況。上季我們將「核心（underlying）綜合比率」作為主要營運指標，目的在於讓投資人更清楚看見我們可控的業務表現，並與巨災事件固有的波動性區隔開來。

That framework was designed for exactly this type of quarter. And when you look at what we control, every key metric improved. Our underlying combined ratio improved by 5.1 points year-over-year to 88.3%. The underlying loss ratio improved by over 4 points to 57.9%. The expense ratio improved by about 1 point to 30.4%.

這套架構正是為了像本季這樣的情況而設計。當你聚焦在我們可控的部分時，每一項關鍵指標都有所改善。我們的核心綜合比率年增改善 5.1 個點至 88.3%。核心損失率改善超過 4 個點至 57.9%。費用率約改善 1 個點至 30.4%。

Direct premiums written grew by almost 20%. Net premiums earned grew by 28%. Investment income increased by 63% and policies in force were up over 7% from the prior year quarter and up 2.5% from year-end. Let me give you more insight into the quarter. The 20% growth in direct premium written was driven by continued momentum in our New York Personal Lines business with new business policies growing 19% year-over-year, average renewal premium up 10% and retention increasing by about 1 point.

直接簽單保費成長將近 20%。淨已賺保費成長 28%。投資收益增加 63%，有效保單數較去年同期增加逾 7%，較年底增加 2.5%。我再提供一些本季的細節。直接簽單保費 20% 的成長，主要來自我們紐約個人險業務的持續動能：新契約保單年增 19%，平均續保保費上升 10%，續保率提高約 1 個點。

Policies in force grew over 7% to more than 82,000. Our renewal rights deal contributed approximately $2.5 million in direct premiums written for the quarter, so inorganic growth contributed about 4%, and our organic growth in New York was a very strong 16%. While policy volume was more moderate in January and February, likely due to the severe weather, March represented one of our strongest months of new business volume, reflecting sustained demand and the competitiveness of our product offering. The downstate New York market is still hard. While we have seen a few new market entrants and a bit of softening, we continue to see strong demand for our products from our producers.

有效保單數成長逾 7%，超過 82,000 張。我們的續保權利（renewal rights）交易在本季貢獻約 250 萬美元的直接簽單保費，因此非有機成長約占 4%，而我們在紐約的有機成長則高達 16%，表現非常強勁。雖然 1 月與 2 月的保單量較為溫和，可能是受惡劣天候影響，但 3 月成為我們新契約量最強的月份之一，反映需求持續以及我們產品供給的競爭力。紐約州下州市場仍然偏硬。儘管我們看到少數新進入者以及些微趨軟跡象，但我們仍持續看到來自通路夥伴對我們產品的強勁需求。

Net premiums earned growth remains a powerful tailwind, increasing 28% in the quarter, primarily due to our reduced quota share, which allows us to retain a greater share of premiums and underwriting profit. As a reminder, for the '26 treaty year, we reduced our quota share from 16% to 5% for our core New York business, reflecting our confidence in the quality of the book. Non-catastrophe claim frequency continues to be very low but up modestly from the prior year quarter and in line with the full year 2025. Adjusted for inflation, non-cat severity was comparable to the prior year quarter. During the quarter, we also recognized 2.3 points of favorable prior year reserve development.

淨已賺保費的成長仍是強勁的順風，本季增加 28%，主要因為我們降低了配額分保（quota share），使我們能保留更高比例的保費與核保利潤。提醒各位，在 2026 合約年度（'26 treaty year），我們將核心紐約業務的配額分保比例由 16% 降至 5%，反映我們對保單組合品質的信心。非巨災理賠頻率仍然非常低，但較去年同期小幅上升，並與 2025 全年水準一致。在通膨調整後，非巨災案件的損失嚴重度與去年同期相當。本季我們也認列了 2.3 個點的前期年度準備金有利發展。

On an inception-to-date basis, our Select homeowner claim frequency continues to be phenomenal and more than 33% lower than our legacy product, which bodes well for the future as Select is only 60% of our policies in force today. Our expense ratio improved by 0.9 points to 30.4%, reflecting continued operating leverage as we scale. Underwriting expense dollars are growing at a slower pace than the growth in net earned premium. To put this in context, from full year '23 to full year '25, we improved the combined ratio from 105% to 75%, grew direct premiums written by nearly 40%, built the balance sheet with no long-term debt and positioned the company for its next phase of growth. One elevated winter quarter does not change that trajectory.

以承保起始日至今（inception-to-date）來看，我們 Select 房屋險的理賠頻率持續表現卓越，較我們的舊有產品低逾 33%；由於 Select 目前僅占我們有效保單的 60%，這對未來發展是正面訊號。我們的費用率改善 0.9 個點至 30.4%，反映隨著規模擴大而持續產生營運槓桿。核保費用金額的成長速度低於淨已賺保費的成長。為了提供脈絡，從 2023 全年到 2025 全年，我們將綜合比率從 105% 改善至 75%，直接簽單保費成長近 40%，在沒有長期負債的情況下強化資產負債表，並讓公司為下一階段成長做好準備。單一冬季季度的偏高表現不會改變這一趨勢。

The structural improvements we have made in risk selection in our operating model and in our claims organization are durable. Turning to our strategic initiatives. We remain on track to enter California in the second quarter on an excess and surplus lines basis. As we outlined in our shareholder letter in April, California is one of the largest homeowner markets in the country with the fastest-growing excess and surplus lines market for homeowners. Our approach is to grow in a very deliberate and controlled fashion as we learn more about our pricing and risk selection.

我們在風險篩選、營運模式以及理賠組織方面所做的結構性改善具有持久性。接著談我們的策略性計畫。我們仍按計畫在第二季以超額與剩餘險（excess and surplus lines）方式進入加州市場。如同我們在 4 月股東信中所述，加州是全美最大的房屋險市場之一，同時也是房屋險超額與剩餘險市場成長最快的州之一。我們的策略是在更深入了解定價與風險篩選的同時，以非常審慎且可控的方式推進成長。

We'll be starting with a small number of agencies, all of whom are existing Kingstone partners in New York. On an abundance of conservatism, we have a 3% quota share in place for California. While the initial contribution to our results will be modest, with most of our volume continuing to come from New York, we believe California can become a significant contributor to our growth and profit long term. We also recently incorporated Kingstone America Insurance Company, a new subsidiary domiciled in Connecticut that gives us flexibility to write business on both an admitted and non-admitted basis. We expect to begin writing admitted homeowners business in Connecticut in the third quarter.

我們將先從少數幾家代理機構開始，這些機構皆為 Kingstone 在紐約既有的合作夥伴。基於高度保守考量，我們已為加州業務安排 3% 的配額分保。雖然初期對業績的貢獻將較為有限，且我們的大部分業務量仍將來自紐約，但我們相信長期而言，加州可成為我們成長與獲利的重要貢獻來源。我們近期也成立了 Kingstone America Insurance Company，這是一家設立於康乃狄克州的新子公司，使我們能更具彈性地以核准（admitted）與非核准（non-admitted）兩種方式承作業務。我們預期將於第三季開始在康乃狄克州承作核准的房屋險業務。

These initiatives are important milestones in our five-year plan to reach $500 million in direct written premium by year-end 2029. A quick comment on the insurance bills introduced by Governor Hochul earlier this year focused on insurance affordability. To date, all activity has been focused on auto insurance. And as such, I am optimistic that there will be no changes during the budget process impacting property insurance this year. What continues to set Kingstone apart is clear.

這些舉措是我們五年計畫中的重要里程碑，目標是在2029年年底前將直接簽單保費提升至5億美元。簡要評論一下霍楚爾州長今年稍早提出、聚焦保險可負擔性的保險法案。截至目前，所有相關動作都集中在汽車保險。因此，我對今年預算程序期間不會出現影響財產保險的變更抱持樂觀態度。持續讓Kingstone脫穎而出的是清晰明確的差異化。

First, our Select product continues to drive low claim frequency through improved risk selection and a low loss ratio by matching rate to risk. Second, our producer relationships generate strong retention and consistent new business flow. Third, our operating efficiency with an expense ratio now at 30%, provides durable margin advantage. And last, our conservative reinsurance program ensures that catastrophe events are an earnings event, not a capital event. We will recover under our winter storm and catastrophe reinsurance programs during the quarter and are grateful to our reinsurance partners for their support.

第一，我們的Select產品透過更佳的風險篩選，並以費率匹配風險以維持較低的損失率，持續帶動較低的理賠發生頻率。第二，我們與製作人（producer）的合作關係帶來強勁的續保率與穩定的新業務流量。第三，我們的營運效率提升，費用率目前為30%，提供持久的利潤率優勢。最後，我們保守的再保險計畫確保巨災事件是「獲利事件」，而非「資本事件」。本季我們將依冬季風暴與巨災再保險計畫獲得理賠回收，並感謝再保險合作夥伴的支持。

As far as our outlook, we are reaffirming all elements of our full '26 guidance, which was issued on March 5. Our guidance for direct premiums written growth of 15% to 20%, an underlying combined ratio of 74% to 76%, a catastrophe loss ratio of 7 points to 10 points, diluted earnings per share of $2.20 to $2.90 and return on equity of 24% to 30% remain unchanged. The first quarter catastrophe activity was within the scenario set embedded in our guidance.

就展望而言，我們重申3月5日發布的2026年全年指引之所有要素。我們對直接簽單保費成長15%至20%、基礎綜合率74%至76%、巨災損失率7至10個點、稀釋每股盈餘2.20至2.90美元，以及股東權益報酬率24%至30%的指引維持不變。第一季的巨災活動落在我們指引所內含的情境範圍之內。

As a reminder, each 1 point of catastrophe loss ratio has an approximate $0.13 per share impact on diluted earnings per share, which we provided last quarter to give investors the tools to model different scenarios. I want to emphasize that the earnings power of this franchise is concentrated in the second through fourth quarters, consistent with typical seasonality for our business. Our underlying performance trends, combined with continued rate adequacy and disciplined growth, position us well to deliver on our full year outlook.

提醒一下，巨災損失率每增加1個點，對稀釋每股盈餘約有0.13美元的影響；我們在上季提供此資訊，讓投資人有工具可建模不同情境。我要強調，這個特許經營（franchise）的獲利能力主要集中在第二至第四季，符合我們業務典型的季節性。我們的基礎績效趨勢，加上持續的費率充足性與紀律性的成長，使我們具備良好條件以達成全年展望。

With that, I'll turn the call over to Randy Patten, our Chief Financial Officer, for a more detailed review of our results. Randy?

接下來，我把電話交給我們的財務長Randy Patten，請他更詳細檢視我們的業績。Randy？

Thank you, Meryl, and good morning again, everyone. The first quarter of 2026 was impacted by losses from 11 winter catastrophe events. During the quarter, we reported a net loss of $5.8 million, a diluted loss per share of $0.40, 112% combined ratio and an annualized return on equity of minus 19.6%. Catastrophe losses added 26 points to the combined ratio in the first quarter of 2026 versus 1.7 points in the prior year quarter. We also recognized 2.3 points of favorable reserve development during the first quarter of 2026 compared to 1.4 points in the prior year quarter.

謝謝你，Meryl，也再次向各位道早安。2026年第一季受到11起冬季巨災事件損失的影響。本季我們報告淨損580萬美元、稀釋每股虧損0.40美元、綜合率112%，以及年化股東權益報酬率為負19.6%。2026年第一季巨災損失使綜合率增加26個點，相較之下，去年同期僅增加1.7個點。我們亦在2026年第一季認列2.3個點的有利準備金發展（favorable reserve development），去年同期為1.4個點。

Removing the impact from catastrophe losses and favorable reserve development, our underlying combined ratio in the first quarter of 2026 improved 5.1 points to 88.3% from 93.4% in the first quarter of 2025. The underlying loss ratio of 57.9% improved over 4 points from the prior year quarter. And including catastrophes alone, the loss ratio improved 5.1 points to 55.6%. This improvement in the underlying loss ratio is supported by low non-catastrophe loss frequency, higher average premium and continued discipline in underwriting. These results reinforce the structural profitability improvements we have made over the past several years.

扣除巨災損失與有利準備金發展的影響後，我們2026年第一季的基礎綜合率較2025年第一季的93.4%改善5.1個點至88.3%。基礎損失率57.9%較去年同期改善超過4個點。而若僅納入巨災因素，損失率亦改善5.1個點至55.6%。基礎損失率的改善，來自非巨災損失發生頻率偏低、平均保費提高，以及承保紀律的持續落實。這些結果再次印證我們過去數年所做的結構性獲利能力改善。

Net premiums earned grew 28% to $55.9 million in the quarter, primarily reflecting the continued growth in direct premiums written, along with the reduced quota share session Meryl described. As a financial matter, the reduction in the quota shares contributing approximately $0.20 of incremental earnings per share for the full year is incorporated in our 2026 guidance. So to bring it together, our reported net combined ratio of 112% compared to 93.7% in the prior year quarter reflects an exceptionally severe winter season. Removing catastrophe losses, the underlying combined ratio of 88.3% improved 5.1 points year-over-year. As Meryl mentioned, we introduced the underlying combined ratio last year specifically to isolate the performance we control from catastrophe volatility and the first quarter is precisely the type of quarter for which the metric was designed.

本季已賺保費淨額（net premiums earned）成長28%至5,590萬美元，主要反映直接簽單保費的持續成長，以及Meryl所述配額分出（quota share）比例的降低。就財務面而言，配額分出比例降低對全年稀釋每股盈餘約貢獻0.20美元的增量，已納入我們2026年指引。綜合而言，我們報告的淨綜合率為112%，相較去年同期的93.7%，反映出異常嚴峻的冬季。扣除巨災損失後，基礎綜合率88.3%年增改善5.1個點。如Meryl提到，我們去年導入「基礎綜合率」指標，目的在於將我們可控的經營績效與巨災波動區隔開來；而第一季正是此指標所設計用來衡量的典型季度。

Our net investment income for the quarter increased 63% to $3.3 million, up from $2 million in the same quarter last year. The momentum continues to be driven by robust cash generation from operations over the last year, which enabled us to grow our investment portfolio to $313.4 million, and we benefited from higher fixed income yields. While we remain conservative in our investment strategy, we are actively seeking opportunities to enhance our portfolio's yield.

本季淨投資收益年增63%至330萬美元，去年同期為200萬美元。此動能持續主要由過去一年營運帶來的強勁現金創造所驅動，使我們的投資組合成長至3.134億美元，且我們亦受惠於較高的固定收益殖利率。雖然我們仍維持保守的投資策略，但正積極尋找提升投資組合收益率的機會。

As of March 31, 2026, our portfolio yield is 4.3%, up from 3.7% at March 31, 2025, an increase of 60 basis points with an effective duration of 4.3 years. For the first quarter of 2026, we reported an expense ratio of 30.4%, an improvement of 0.9 percentage points from the first quarter of 2025. We continue to be diligent with expense management, realizing economies of scale as we continue to grow. As a reminder, the company's expense ratio was 41% in 2021. In less than five years, we have lowered it by 10 points, and we see opportunity to improve further as we gain scale.

截至2026年3月31日，我們投資組合收益率為4.3%，高於2025年3月31日的3.7%，增加60個基點；有效存續期間為4.3年。2026年第一季，我們報告費用率為30.4%，較2025年第一季改善0.9個百分點。隨著持續成長，我們仍嚴謹管理費用並實現規模經濟。提醒一下，公司在2021年的費用率為41%。不到五年，我們已將其降低10個點，並且隨著規模擴大，我們仍看到進一步改善的空間。

Moving on to our capital position. As a reminder, we have no debt at the holding company. Shareholders' equity ended the quarter at $114.55 million, a decrease of $8.2 million during the quarter, a 39% increase in the first quarter of 2025. Book value per diluted share was $7.70 at March 31, 2026, a decrease of $0.58 from December 31, 2025, but an increase of 38% from $5.57 at March 31, 2025. Excluding accumulated other comprehensive income, book value per diluted share was $8.23, an increase of 32% from the prior year.

接著談我們的資本狀況。提醒一下，我們控股公司層級沒有任何負債。股東權益於本季末為1.1455億美元，季減820萬美元；相較之下，2025年第一季為增加39%。截至2026年3月31日，稀釋後每股帳面價值為7.70美元，較2025年12月31日減少0.58美元，但較2025年3月31日的5.57美元增加38%。若排除累積其他綜合損益（AOCI），稀釋後每股帳面價值為8.23美元，較去年增加32%。

During April 2026, we declared our fourth consecutive quarterly dividend and have ample capital to fund the disciplined growth initiatives that we have outlined, including our entry into California in the second quarter and our launch of Kingstone American Insurance Company in Connecticut later this year.

在2026年4月，我們宣告連續第四次的季度股利，且我們擁有充足資本以支持我們所概述的紀律性成長舉措，包括第二季進入加州，以及今年稍晚在康乃狄克州推出Kingstone American Insurance Company。

To wrap up our prepared remarks, it's not uncommon for Kingstone to experience its greatest level of catastrophe losses in the first quarter of the year being a Northeast writer. However, the first quarter of 2026 was one of the coldest and snowiest winters in the last 11 years after experiencing two of the more unusually mild winters in the previous two years. Looking beyond the catastrophe losses, the trajectory of the business has not changed. We continue to execute on our strategy.

為我們的預先準備發言作結，作為一家東北地區承保公司，Kingstone 在一年第一季出現全年最高災害損失水準並不罕見。然而，2026 年第一季是在過去 11 年中最寒冷、降雪最多的冬季之一，因為前兩年經歷了兩個較為異常溫和的冬季。撇開災害損失不談，公司的業務發展軌跡並未改變。我們將持續執行我們的策略。

In the first quarter, we delivered improvements in underwriting, growth in premiums, and increased investment income and continued diligent expense management, which will all carry through the rest of the year. Our capital position gives us the flexibility to execute against our growth plan without compromising balance sheet strength. And therefore, we are reaffirming all metrics in our 2026 projections.

在第一季，我們在核保方面帶來改善、保費成長、投資收益增加，並持續嚴格控管費用，這些都將延續到今年其餘時間。我們的資本部位讓我們能在不犧牲資產負債表強度的情況下，具備執行成長計畫的彈性。因此，我們重申 2026 年展望中的所有指標。

With that, operator, we are ready for questions.

接下來，接線員，我們準備開始問答。

(Operator Instructions)

(接線員指示)

Bob Farnam, Brean Capital.

Bob Farnam，Brean Capital。

Hey, there. Good morning. I had several questions here. But so -- one question I had was how much of the cats got into the reinsurance layer. Now it sounded like you're going to have some sort of recovery from the reinsurance companies. So it sounds like it did. So can you give us an idea of what kind of gross losses look like relative to net losses?

嗨，你好。早安。我這邊有幾個問題。其中一個問題是，這次災害損失有多少進入再保層？聽起來你們會從再保公司取得某種程度的理賠回收。所以聽起來確實有進入。那你們能否讓我們了解一下，總損失（gross losses）相對於淨損失（net losses）大概是什麼樣子？

Sure. So we -- if you recall, we bought first event winter storm coverage. So that is a $5 million recovery. And then we have roughly $4 million, maybe $5 million going into the reinsurance tower. So our gross loss was about $25 million.

當然。如果你還記得，我們買了第一事件（first event）的冬季風暴保障。因此可回收 500 萬美元。另外大約有 400 萬美元、可能 500 萬美元會進入再保塔（reinsurance tower）。所以我們的總損失大約是 2,500 萬美元。

Okay. And net was 14.5, something along those lines?

好的。那淨額是 1,450 萬左右，差不多是這樣？

Yes. 26 points, yes.

是的。26 個點，是的。

Okay. So I don't want to get too much into forward-looking stuff, but you said that the policy count growth was accelerated in March. Can you give us an idea how -- did that continue into April, or is that something that you don't want to touch at this point?

好的。我不想太深入談前瞻性的內容，但你提到保單件數的成長在 3 月加速。你能否讓我們了解一下——這個趨勢在 4 月是否延續，還是你們目前不方便談？

Yes. Our growth -- I can tell you that our growth have continued into the second quarter. We're at even a slightly higher premium growth than we've been experiencing. So I feel really good about our position in New York.

可以。我們的成長——我可以告訴你，我們的成長已延續到第二季。我們目前的保費成長甚至略高於先前的水準。所以我對我們在紐約的定位感到非常有信心。

Okay. Great. One quick question for -- I guess, probably for Randy. So other operating expenses was higher than I expected. I wasn't sure if that was consulting fees related to get into California or something like that.

好的。很好。一個快速問題——我想可能是問 Randy。其他營運費用比我預期的高。我不確定那是否是與進入加州相關的顧問費之類的。

I just want to know if that was more of a run rate, or is that a one-off relative to the last year, it seems like it was a lot higher.

我想了解那比較像是常態性的費用水準（run rate），還是一次性項目？相較去年看起來高了很多。

Yes. Hi, Bob. That's Randy. Yes. So other operating expenses, yes, that was a onetime expense, and that was really related to some board-level projects.

是的。嗨，Bob。我是 Randy。是的。其他營運費用確實是一次性費用，主要與一些董事會層級的專案有關。

So we don't expect that to continue in the future.

所以我們不預期未來會持續發生。

Okay. Great. And the last one I have, California. So it's probably more of an all-encompassing question. So all I hear over the last several months is X company getting into California on an excess surplus lines basis.

好的。很好。最後一個是關於加州。這可能是一個比較全面性的問題。過去幾個月我聽到的都是某某公司以超額與剩餘線（E&S）方式進入加州。

X MGA is getting into California on an excess and surplus lines basis. I'm not sure what this does to the competitive environment in California, but I just kind of want to have an idea from you whether or not if the increased competition has an impact on your business plans, how amenable are you to tweaking your business plans? So I just maybe get a feel for kind of what the California situation is going to be looking like.

某某 MGA 也以超額與剩餘線（E&S）方式進入加州。我不確定這會如何影響加州的競爭環境，但我想從你們這邊了解一下，競爭加劇是否會影響你們的業務計畫？你們對於調整業務計畫的彈性有多大？所以我想大概感受一下，加州的情況接下來可能會是什麼樣子。

Sure. So let's not forget that the California market is $15 billion in homeowners premium, and it's the largest E&S homeowners market in the United States. So -- and lots of the admitted companies have pulled back. So there is a huge need for capacity in California. So I have heard of lots of different companies and/or MGAs entering on an E&S basis, but I really don't think it is going to change the demand for our product given the need for capacity.

當然。別忘了，加州住宅險保費市場規模為 150 億美元，而且是美國最大的 E&S 住宅險市場。而且許多核准承保（admitted）的公司已經縮手。因此加州對承保容量（capacity）有非常大的需求。我確實聽說有許多不同公司和／或 MGA 以 E&S 方式進入，但考量到容量需求，我不認為這會改變市場對我們產品的需求。

If you recall, our plan was to enter in a very conservative way. We're anticipating that California volume will be less than 5% for 2026. So I don't think there will be any implications on our plan in California at this point. But Kingstone is a very nimble company, and we will change our strategy in order to win in California. So we'll do what we need to do. But right now, I don't think there's any change that we need to make.

如果你還記得，我們的計畫是以非常保守的方式進入。我們預期 2026 年加州的業務量占比將低於 5%。所以我認為目前這不會對我們在加州的計畫造成任何影響。不過 Kingstone 是一家非常靈活的公司，我們會為了在加州勝出而調整策略。所以我們會做需要做的事。但就目前而言，我不認為我們需要做任何改變。

Okay. And I know I've asked you before, but -- so in the competitive environment in California, so what does Kingstone offer that will give agents the options to say, hey, we're going to put you with Kingstone over 30 other companies that might be looking for this business?

好的。我知道我之前問過你，但——在加州的競爭環境下，Kingstone 提供了什麼，能讓代理人在可能有 30 家其他公司也在爭取這類業務時，選擇把業務放在 Kingstone？

Sure. So our strategy in California is to capitalize on the same strengths that we have demonstrated in the New York market. So the first is that we're going to have a very high -- we created a select product specific for California. So we'll have a very highly segmented product to match rate to risk. So potentially, our price could be a reason that an agent puts business with us.

當然。我們在加州的策略，是運用我們在紐約市場已證明的同樣優勢。第一，我們會提供非常高——我們為加州打造了一個精選（select）的專屬產品。因此我們會有高度分眾的產品，以便讓費率與風險相匹配。所以在某些情況下，我們的價格可能會成為代理人把業務交給我們的原因。

Second, we are a company, not an MGA. So -- and we are very much committed to the long term in California. We are committed to independent agents, and our plan is to enter the state and offer ease of use to the independent agents. We want their business, and we want a long-term relationship with them, which is different than some of the entrants who are just looking to capitalize on short-term market opportunities. So we feel pretty good that we'll be able to succeed in California.

第二，我們是一家保險公司，而不是 MGA。而且我們非常致力於在加州的長期經營。我們承諾支持獨立代理人，我們的計畫是進入該州並為獨立代理人提供易用性。我們希望取得他們的業務，並與他們建立長期關係；這與某些新進者只想把握短期市場機會有所不同。因此我們相當有信心能在加州取得成功。

Great. Thanks for the color.

很好。謝謝你提供的補充說明。

My pleasure.

不客氣。

Gabriel McClure.

Gabriel McClure。

Good morning, Meryl. I was going to ask you if there's any color or updates on the AmGUARD opportunity.

早安，Meryl。我想請問一下，關於 AmGUARD 這個機會案是否有任何補充說明或最新進展？

Sure. So for those that don't know, we did sign a renewal rights agreement with AmGUARD. We started writing business last September and the business is being non-renewed over a three-year period in New York, consistent with the minimum policy term, and we offer a quote to our producers when the business is renewing. So we've been writing about $800,000 a month since last September. In the first quarter, we wrote $2.5 million. So it represented about 4% of our growth in the quarter.

當然。所以對於不清楚的人，我們確實已與 AmGUARD 簽署了續保權利協議。我們從去年 9 月開始承作業務，而該業務在紐約會在三年期間內逐步不予續保，這與最低保單期間一致；當業務續保時，我們會向我們的製作人提供報價。因此，自去年 9 月以來，我們每月大約承作 80 萬美元。第一季我們承作了 250 萬美元。所以它約占我們該季成長的 4%。

Okay. Great. Are you doing any investing or work around AI right now?

好的。很好。你們目前有在 AI 方面做任何投資或相關工作嗎？

Sure. So we do a lot in AI. We don't talk about it much, but everything we're doing is about improving the productivity of our staff. So I'll give you some examples. So on the claims side, we are about to elevate AI and agentic AI for first notice of loss.

當然。我們在 AI 方面做了很多。我們不太常談，但我們所做的一切都是為了提升員工的生產力。我舉幾個例子。在理賠端，我們即將把 AI 與代理式 AI（agentic AI）提升到用於「損失首次通知」（first notice of loss）。

So that will be very helpful in the event of catastrophe, which we hope we don't have any more this year. We've had enough. But that will -- there will be no limit on the number of losses that can be taken at any point in time. We also use a system to generate all of the coverage letters for the claims adjusters. And we use AI in terms of the content claims process, which has been very successful in improving the customer experience as well as reducing indemnity costs.

因此在發生巨災時會非常有幫助——我們希望今年不要再有了。我們已經夠多了。但那將會——在任何時間點可受理的損失件數將不再有上限。我們也使用一套系統為理賠人員產出所有的承保範圍函（coverage letters）。此外，我們在財物內容物理賠流程（content claims process）中也使用 AI，這在改善客戶體驗以及降低賠付成本方面都非常成功。

On the underwriting side, we use AI to evaluate property condition and also to identify inconsistencies between all the different sources the underwriters use to evaluate an individual property. So I could go on and on like it's evolving and changing. And I would say we're -- while we're doing a lot, just like many companies, we're early on, and we look forward to enhancing our usage of AI in the future.

在核保端，我們使用 AI 來評估不動產狀況，也用來辨識核保人員在評估單一物件時所使用的各種不同資料來源之間的不一致之處。所以我可以一直講下去——它正在演進與改變。我會說，我們——雖然做了很多，但就像許多公司一樣，我們仍在早期階段，並期待未來進一步強化我們對 AI 的運用。

That sounds really, really good.

聽起來真的、真的很不錯。

Excellent.

非常好。

Yes. I think Bob asked you about the increased pace of growth in the first quarter. And just to kind of reaffirm, you said that the pace was continuing to be brisk, if not a little bit brisker in this quarter, if I heard right. And I was going to also ask you, I live out here in Arizona, so stupid question, but do you guys have any cat activity in Q2 so far?

是的。我想 Bob 問過你第一季成長加速的情況。我想再確認一下，如果我沒聽錯的話，你說這一季的成長速度仍然很快，甚至可能更快一些。另外我也想問，我住在亞利桑那，所以可能是個蠢問題，但你們到目前為止在第二季有任何巨災活動嗎？

So I think the answer is no. We experienced all that we could handle in Q1. Typically, Q2 is a very low cat quarter. And as far as I know, so far this quarter, there have been no catastrophe events.

我想答案是沒有。我們在第一季已經經歷了我們所能承受的一切。通常第二季是巨災非常少的一季。就我所知，截至目前本季沒有發生任何巨災事件。

Okay. Okay. Very good. And then I want to ask you about Connecticut. You kind of announced that we're going in on an admitted basis. And just kind of wondering about your thinking on going in on an admitted basis versus a non-admitted basis when you have a few more strings tied to you when you go in on an admitted basis.

好的。好的。非常好。接著我想問你關於康乃狄克州。你有點像是宣布我們將以 admitted（持照）方式進入。我想了解一下，你們在選擇以 admitted 方式而非 non-admitted（非持照）方式進入時的考量；因為以 admitted 方式進入時會有更多限制。

Yes. So on any individual state entry, we evaluate whether we should do it on an admitted or a non-admitted basis. And the Connecticut insurance department is pretty insurance company friendly. We've operated here before. They move pretty quickly on filings.

是的。對於任何單一州的進入策略，我們都會評估應該以 admitted 或 non-admitted 方式進行。康乃狄克州保險局對保險公司相當友善。我們以前在這裡營運過。他們對申報（filings）的審核速度相當快。

They're very reasonable. And really, feedback we received from producers is that we would be adversely selected against as an E&S writer. There is -- an opportunity is on the admitted side. So it's really a combination of, let's call it, a friendly regulatory environment, along with the needs in the marketplace, and we think we can be successful in Connecticut on an admitted basis.

他們非常合理。而且我們從製作人那裡收到的回饋是：如果我們以 E&S（超額及剩餘）承保人身分承作，會遭遇不利的逆選擇。機會——是在 admitted 市場端。所以這其實是多項因素的組合：可以說是友善的監管環境，加上市場端的需求；我們認為以 admitted 方式在康乃狄克州可以成功。

Okay. Okay. Thanks for the color there. And then if I could, just one last question maybe for Randy. There was, I think, a $2 million loss in AOCI. Was that tied to higher interest rates marking down the bonds?

好的。好的。謝謝你補充說明。如果可以的話，最後一個問題可能想問 Randy。我記得 AOCI 有大約 200 萬美元的損失。那是因為利率上升導致債券按市價評價下跌嗎？

Yes, that's exactly right, Gabe. Yes, that's correct.

是的，完全正確，Gabe。是的，沒錯。

Thanks, Gabe. See you in Las Vegas at Planet Micro.

謝謝你，Gabe。拉斯維加斯 Planet Micro 見。

(Operator Instructions) I'm showing no further questions at this time. I'd now like to hand the call back over to Meryl Golden, President and CEO, for any closing remarks.

(接線員指示) 目前顯示沒有其他提問。現在我想把電話交回給總裁兼執行長 Meryl Golden，請她做結語。

Thanks for joining the call today. We're going to continue to execute with discipline, manage catastrophe exposure prudently and invest in scalable growth opportunities to deliver long-term value to our shareholders. We look forward to updating you as the year progresses. Have a good day.

感謝各位今天參與電話會議。我們將持續以紀律執行、審慎管理巨災曝險，並投資於可擴展的成長機會，以為股東創造長期價值。我們期待在今年進展過程中向各位更新。祝各位有美好的一天。

Ladies and gentlemen, thank you so much. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

各位女士、先生，非常感謝。今天的電話會議到此結束。感謝各位的參與。您現在可以掛斷電話。祝您今天剩下的時間愉快。